A recent report reveals that the population of Turkey is rapidly adopting cryptocurrencies, with most aiming to build wealth in the long term rather than seeking quick profits.
“Meanwhile, the Turkish lira has depreciated more than 50% against the US dollar, making cryptocurrencies a haven against inflation,” the study notes.
Türkiye Adopts a Buy and HODL Cryptocurrency Investment Strategy
KuCoin, a major cryptocurrency exchange, recently published a report explaining the state of cryptocurrency activity and expansion in Turkey.
The report highlights that the second quarter of 2023 saw significant adoption, with an average investment of around $3,746:
“31% of cryptocurrency investors joined in the last quarter and 36% invested more than 100,000 lira.”
The report is based on a survey of 550 adult investors between the ages of 18 and 60 in Turkey. All participants own or have invested in cryptocurrencies in the last six months.
The results indicate that Turkish citizens are focused on the long term rather than trying to make quick profits:
“58% invest in cryptocurrencies to increase long-term wealth, followed by 37% to store value.”
When it comes to cryptocurrencies of interest, Bitcoin leads the way at 71%, followed by Ethereum at 45% and stablecoins at 33%.
The fall of the National Currency Shifts Attention to Cryptocurrencies
According to the report, more than half of the Turkish survey participants (57%) heard about cryptocurrencies from friends or family, and 35% discovered it through local communities.
Meanwhile, he cites the Turkish lira losing more than 50% of its value against the US dollar as a contributing factor. This situation turns cryptocurrencies into a “refuge against inflation”.
Recent reports reveal that the Turkish lira has been falling dramatically against the US dollar for quite some time.
The monetary policy committee of the Central Bank of the Republic of Turkey has recently declared its intention to continue tightening monetary policy until the situation is resolved:
“Monetary tightening will be tightened as much as necessary, in a timely and gradual manner, until a significant improvement in the inflation outlook is achieved.”
By Leonardo Pérez
